There are two ways to compare fund performance. One is global comparison, which ranks all funds or the same group of funds together. Second, compare the fund with a predetermined benchmark. This predetermined benchmark is the performance comparison benchmark of the Fund.
This comparison method measures the fund performance by defining a suitable benchmark portfolio for the evaluated fund and comparing the difference between the fund return rate and the benchmark portfolio return rate. The benchmark portfolio is an investable and unmanaged portfolio with the same style as the fund. Performance comparison benchmark is an important criterion for investors to evaluate the performance of fund management companies.
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Since 2002, the regulatory authorities have required open-end funds to publish performance benchmarks at the time of issuance, and funds with different risks and returns track different benchmarks, which is conducive to the stability of fund style and investors' reasonable evaluation of fund performance.
With the comparison between performance benchmark and fund net value becoming the content of statutory information disclosure, investors will no longer simply use the simple and unreasonable method of "whether to beat the market" to judge the quality of funds, which will also help fund managers to abide by fund contracts and maintain a stable investment style.
According to the new fund information disclosure rules, in the annual report, semi-annual report and quarterly report of the fund, the fund manager must disclose the comparison between the net growth rate and the benchmark return rate of the same period, and require the fund to disclose the changes in the net value since the fund contract came into effect in a graphic way and compare them with the changes in the benchmark performance. In this way, investors can intuitively understand the performance of the fund in the past period of time.
Extended data
The Dow Jones index was first compiled by Charles Henry Dow, the founder of Dow Jones Company (1851-kloc-0/902) in 1884. It is an arithmetic average stock price index.
The original Dow Jones stock price average index is based on 1 1 representative railway company stocks, compiled by arithmetic average method, and published in the Daily Communication edited and published by charles dow himself. The index aims to reflect the overall trend of the US stock market, covering finance, technology, entertainment, retail and other industries.
Since 1897, the Dow Jones stock price average index has been divided into two categories: industry and transportation, in which the industrial stock price average index includes 12 stocks and the transportation average index includes 20 stocks, which have been published in the Wall Street Journal published by Dow Jones. 1929, the Dow Jones stock price average index added public utility stocks, bringing the number of stocks it contains to 65, and it has continued to this day.
calculate
The original calculation method of Dow Jones stock price average index is simple arithmetic average method. When the stock is ex-dividend, the stock index will be discontinuous. After 1928, the average price of Dow Jones stocks was changed to a new calculation method, that is, the connection technology was adopted in the ex-dividend or ex-dividend of the counted stocks to ensure the continuity of the stock index, so that the stock index was improved and gradually extended to the whole world.
The earliest calculation formula is: average stock price = sum of selected stock prices/number of selected stocks.
At present, the calculation formula is: average share price = sum of prices of selected stocks/divisor of Dow, which will be affected by the integration of share split and the company.
Baidu Encyclopedia-Dow Jones Index
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